What is an Accelerated Death Benefit
In a life insurance policy you will often find that the plan offers to provide a portion of the death benefit to the person insured while they are still alive.
Most often the insurance company will require a doctors assessment that the insured has a life expectancy of 12 months or less.
Usually the policy will pay 50% of the death benefit and the balance paid to the beneficiaries after the death of the insured.
Sometimes called an Accelerated Life Benefit.
If an insured person has a serious condition and a limited life expectancy, but not short enough to qualify for this early payout from the policy, the family may look into selling the policy as a Viatical or Life Insurance Settlement transaction.